Electronic Data Interchange (EDI) is the computer-to-computer exchange of documents in standardized, electronic formats. EDI is also a business strategy utilizing technology to achieve business objectives and enhance business relationships.
EDI is faster, more accurate and more cost-efficient than paper-based systems for managing a wide-range of documents including purchase orders, invoices, and payments. When documents are sent electronically as EDI transactions, they can be exchanged between two companies (commonly referred to as Trading Partners) anywhere in the world within hours or minutes. The standardized formats make it possible for a variety of organizations--from manufacturing firms to law firms, from universities to retailers, from laboratories to hospitals--to exchange information easily and without confusion.
Companies utilizing EDI technology are always accessible in the world market place and hold an advantage over their competitors because they can offer a higher level of service to their customers.
TXU is committed to being an industry leader in the development and utilization of EDI. We are very active in the national organizations which continue to refine the EDI standards for the utility industry, thereby ensuring that the formats we use for EDI transactions will be consistent with the formats used by the majority of utilities, utilities' suppliers, and customers nationwide.
Customers and EDI
TXU believes EDI provides an effective tool to better serve our customers and to further strengthen our business partnerships.
Customers with whom we have recently developed EDI partnerships are realizing the following benefits:
Streamlined utility service bill (electronic invoice) and payment processing (electronic funds transfer --EFT)
Reduced costs associated with elimination of manual processing and error reduction.
Elimination of the risk of incurring late payment charges as a result of unpredictable mail float.
Suppliers and EDI
The development of EDI partnerships with our suppliers will serve to strengthen the business relationship we have with our suppliers. As a result, TXU is actively pursuing EDI partnerships which will provide the following benefits to suppliers:
The ability to reduce costs resulting from decreased paperwork, fewer errors and streamlined processes.
The ability to provide faster, higher quality service.
The ability to better manage the order processing, billing and accounts receivable functions along with improved cash forcasting and cash processing.